Whether you are a first time life insurance purchaser, a life insurance policy holder wanting to combine some of your insurance policies, or a current life insurance policy holder searching for a better rate and increased coverage, you are bound to have some questions. The following article will answer many of your questions and guide you to selecting the best life insurance policy options, while alleviating much of the confusion and stress involved.
If you have a high risk job or hobby, be up front about it. It’ll cost you more, but it can prevent ineligibility if your insurance company found out themselves. In fact, failure to provide this type of information may constitute a form of fraud, which has significant legal and financial penalties.
A life insurance policy is vital if you have anyone in your life who is dependent on you financially. If you die, a good life insurance plan will provide for your spouse and children.
Before shopping for life insurance, put together a budget to project the amount of financial coverage you might need. Include your mortgage payoff, college costs for the kids, money to pay any other large debt obligations, funds to cover funeral and medical expenses and enough money to supplement your remaining spouse’s retirement funds.
Choose how you’d like to purchase your policy as there are many avenues to pursue. If you can’t go through your employer for insurance, you can always purchase it for yourself. Finding a financial planner who works on a fee-only basis can help you make your decision, or you can use an insurance agent who works for a single company.
Watch out for insurance salesman that make unrealistic claims about their knowledge or performance. If an agent tries to downplay the importance of ratings, or claims to have inside information, run the other way, and then get on the phone to corporate and complain.
If you have never had life insurance before, it is highly recommended that you consult with a financial representative prior to deciding on a policy. Although you may feel that you can adequately determine your dependents’ needs in the event of your death, a financial representative has far more experience and will generally be able to advise you on other variables you have not thought of. You might actually need significantly more coverage than you assumed.
When searching for life insurance, it’s a sound strategy to do you your homework but also hedge your bet by consulting a professional. Such individuals are equipped to make recommendations about coverage levels and will assist with any concerns or changes you have in mind.
If a relative of yours recently died and named you as the beneficiary on his life insurance policy, but the policy itself is missing, there are steps you can take to locate the policy, even if you don’t know which insurance company issued it. Examine the deceased’s canceled checks for any that were written to insurance companies. Look through any mail you can find for insurance bills or policy status notices. Check with former employers or organizations that the deceased belonged to which may have offered the policy. Look at tax returns for expenses or interest earned in regard to life insurance. Finally, check with the Medical Information Bureau, which has a database that can inform you if the medical records of the deceased were requested by any insurance companies since 1996.
What you have read in this article should make you better able to choose the life insurance that is right for you. You should now be better prepared to purchase affordable life insurance that meets your and your family’s needs.